Loan amounts available up to $453,100, down payments as low as 3% or 5% (depending on location), and 620 minimum credit scores are required.
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The type of financing secured by more homebuyers than any other, including programs following the guidelines established by Fannie Mae and/or Freddie Mac. These two entities are the foundation of Conventional financing and set loan guidelines for most Conventional programs.
Loan amounts available up to $453,100, down payments as low as 3% or 5% (depending on location), and 620 minimum credit scores are required.
There are four different ways we can structure your financing and reduce the impact of mortgage insurance on your monthly house payment. We can do borrower paid single-premium, we can roll the MI into your loan amount, we can pay for it through lender proceeds, and we can combine your first mortgage with a second mortgage to avoid PMI altogether. We show you a side-by-side comparison so you can easily see the differences.
Yes, most fixed rate Fannie Mae loans offer the recast feature, whereby you can pay down the outstanding mortgage loan balance and then reset/lower the monthly payment due each month to reflect the lower loan amount due to be paid back over the remaining term of the loan. This is a smarter option than doing a full refinance to get the lower mortgage payment you are seeking. The ability to recast is determined by the servicer of your loan.
Government-backed financing that in many cases allows for smaller down payments and more liberal qualifying guidelines than Conventional financing.
The Federal Housing Administration is an agency of the federal government whose mission is to help the public obtain financing for home ownership by assisting lenders in the reduction of risk by insuring FHA loans. FHA is a part of the Department of Housing and Urban Development.
For the purchase of a single-family residence, in densely populated metro areas the maximum loan size is currently $359,950. In non-metro areas the FHA loan limit is currently $294,515.
It doesn’t drop off in FHA financing if you make a down payment of 10% or less. The Monthly Insurance Premium is for life if you make the most popular down payment of 3.5% on FHA financing. If you can make more than a 10% down payment the mortgage insurance drops off after 11 years.
These are loans whose size exceeds the $453,100 Fannie Mae limit. Guidelines for Jumbo are generally more strict and in most all cases a 20% down payment is required.
Loans can exceed $3M, 20% is almost always the minimum down payment, and a minimum 700 score is the general rule for the best Jumbo financing.
As a rule, rates for this type of financing are higher than for a conventional mortgage. Why? Since the loans are for larger amounts they come with additional risk for the lender, thus the higher interest rate.
Debt-to-income ratios are more limited for Jumbo financing often limited to 43 percent of your pre-tax income. If the mortgage size exceeds a certain threshold, a 30% down payment may be required instead of the standard 20%, and financial reserve requirements (the amount of money you have after your down payment is made) are significantly higher than for other forms of financing.
We finance your purchase of the home “as is” and finance the work to take it from where it is to where your vision believes it can go.
If you would like to make a 5% down payment on your renovation loan, the max loan amount is $453,100. If you can make a 20% down payment, you can do renovation financing for over $1 million.
You select your own contractor and arrange your own costs of the project. We then work with your contractor to facilitate the distributions of the loan funds to finance the cost of the work.
No, the loans for renovation with loan amounts up to $453,100 can only be used to acquire and renovate an existing property. This financing does not allow for removing the entire house and starting to build from scratch.
If you served in our nation’s military, first, let me thank you for your service. I appreciate the sacrifice you made and your commitment to our country. The Veteran’s Administration makes available special financing for Veterans with options not found in other loan types.
Yes, we do. And lots of it.
A VA home loan allows qualified buyers the opportunity to purchase a home with no down payment and with no monthly mortgage insurance.
There’s not a max size. The max size to get 100% financing is $453,100. After that, the veteran/homebuyer pays 25% of the amount over a $453,100 sales price as a down payment.
Everyone is required to obtain a Certificate of Eligibility from the VA. Not all veterans can pull theirs online, but you can check to see by following this link. Click Here to get a Copy of Your Certificate of Eligibility. You’ll also need your discharge papers (the DD-214) showing character of service.
Special financing for purchases of homes in rural areas.
There is no max USDA loan amount – everything is driven by your debt-to-income ratio and overall ability to repay.
No, first-time homebuyers and repeat homebuyers alike can utilize the USDA loan.
Let’s check, because USDA eligibility is geography based, meaning the property must be in what is designated by the government as a rural area. Check out this USDA map.
This type of financing allows you to borrow the money to build a home from scratch, financing both the construction phase (in concert with your homebuider) and then the loan converts from the construction phase to the permanent phase where it becomes a traditional fixed-rate mortgage just as you’ve known your entire life. It’s a two-part, all-inclusive, build-your-dream home loan.
For loans above $453,100 in loan amount, a 20% down payment is required. For loan amounts at or under $453,100, a 10% down payment can be made.
Experience has shown that once a big construction project starts, sometimes “things happen.” If something comes up that was unexpected, this contingency amount has been established from the start to cover the costs of solving the situation without having to stop things and go back to apply for a larger construction-permanent loan.
Always budget a time-frame of no fewer than 45 days for a construction-permanent closing.
Credit and collateral are subject to approval. Terms and conditions apply. Rates, program terms and conditions are subject to change without notice. Some programs have geographic restrictions. This is not a commitment to lend.